What must occur for deductions on substandard property expenses?

For deductions on substandard property expenses, a re-inspection by the regulatory agency is essential. This requirement is grounded in the need for clarity and verification regarding the condition of the property. A regulatory agency assesses whether the property meets health and safety standards, and such an inspection is necessary to determine if the expenses incurred to address substandard conditions are legitimate and justifiable for tax purposes.

Without this re-inspection, property owners cannot substantiate their claims for deductions related to expenses incurred for repairs or improvements made to rectify issues that rendered the property substandard. The re-inspection serves as a formal acknowledgment that the previous deficiencies have been addressed, helping to provide the necessary documentation for tax deductions.

The other options—such as selling the property, obtaining approval from the property owner, or receiving notification from tenants—do not fulfill the requirement for establishing the legitimacy of expenses related to substandard conditions. These actions do not provide the official validation needed to support claims for deductions in accordance with tax regulations.